Provision in Latest Covid Package Requires Institutions to Conduct Outreach Regarding Use of Professional Judgment

NASFAA

Publication Date: 3/15/2021

Provision in Latest Covid Package Requires Institutions to Conduct Outreach Regarding Use of Professional Judgment

A provision included in the American Rescue Plan, signed into law on Thursday, requires institutions receiving aid from the Higher Education Emergency Relief Fund (HEERF) to use a portion to conduct direct outreach to financial aid applicants about the opportunity to receive a financial aid adjustment due to the recent unemployment of a family member, or themselves if they are considered an independent student.

The provision follows guidance from the Department of Education (ED) earlier this year encouraging the use of professional judgement (PJ) and reminding institutions of their ability to use documentation of unemployment to reduce or adjust to zero an unemployed individual’s income earned from work and adjusted gross income in the federal methodology formula.

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